9:02:50 AM | 12/27/2023
Against the backdrop of the official visit to Vietnam by Cambodian Prime Minister Hun Manet, the Vietnam-Cambodia Investment and Trade Promotion Forum emerged as an important event. Attended by Prime Minister Pham Minh Chinh and Cambodian Prime Minister Hun Manet, this event not only marked a significant milestone in diplomatic relations but also served as a platform to assess the positive strides in economic, trade and investment collaboration between Vietnam and Cambodia.
Vietnamese Prime Minister Pham Minh Chinh and Cambodian Prime Minister Hun Manet co-chair the Vietnam-Cambodia Investment and Trade Promotion Forum
Bolstered by a foundation of robust and stable political ties, the economic connection between Vietnam and Cambodia has flourished remarkably. From 2015 to 2022, experiencing an average growth rate exceeding 20%, Vietnam solidified its position as the largest ASEAN investor and one of the top five global investors in Cambodia, with 205 projects amounting to a registered investment capital of US$2.95 billion.
Yet, despite these achievements, the potential for bilateral economic cooperation remains largely untapped. To chart a course toward sustainable development, Vietnam and Cambodia must grapple with existing challenges, focusing on enhancing economic connectivity and collaborating in crucial sectors such as agricultural and forest product processing, tourism, health, education and infrastructure.
At the forum, Prime Minister Hun Manet highlighted the diplomatic ties between the two nations, encapsulating the spirit of "good neighbors, traditional friendship, long-lasting comprehensive and sustainable cooperation." Choosing Vietnam as the prime minister's inaugural destination after assuming office underscored the importance and priority that Cambodia places on this relationship.
Prime Minister Hun Manet accentuated the impressive investment figures, with Vietnam's registered investment capital in Cambodia surpassing US$2.91 billion. Projects initiated by Vietnamese companies are operating successfully, significantly contributing to Cambodia's socioeconomic development. Notably, Vietnamese tourists rank second globally in Cambodia, and more than 320,000 Cambodian tourists have visited Vietnam. Prime Minister Hun Manet announced the inauguration of Siem Reap International Airport and plans for the new international airport in Phnom Penh, including the cooperation of airlines like Vietjet to launch a direct flight from Hanoi to Siem Reap. A sharp increase in tourist arrivals is anticipated between the two nations in the foreseeable future, further fortifying the bilateral ties.
Delegates at the Vietnam-Cambodia Investment and Trade Promotion Forum
Despite the notable strides in the bilateral relationship, both Prime Ministers underscored the vast untapped potential between Vietnam and Cambodia. Recognizing the possibilities inherent in the RCEP Agreement and collaborative production supply chains, they emphasized that by synergizing efforts, sharing benefits, and navigating risks collectively, the two nations can unlock new breakthroughs.
The leaders pledged to further empower their businesses, fostering effective cooperation in investment and commerce. The Vietnamese Government, in tandem with Cambodia, will persist in promoting investment in sectors aligned with Cambodia's priorities, including manufacturing and processing, renewable energy, high-tech agriculture with elevated added value, agricultural and forestry product processing, special economic zones, and tourism. A focus will be granted to fostering border economic development cooperation.
In reciprocation, Cambodia commits to an enhanced legal framework, robustly fortifying the investment and business environment. Administrative procedures related to investment and business will undergo reforms, ensuring transparency and steadfast consistency in law enforcement. The nation will prioritize investments in upgrading and fortifying critical infrastructure systems that seamlessly connect the two economies, thereby catalyzing increased investment and trade cooperation.
The forum witnessed the signing ceremony of investment certificates, cooperation agreements, and memorandums of understanding. These included Vietjet Airlines' certificate for the inauguration of the Hanoi-Siem Reap direct flight, the memorandum of understanding on credit provision by Military Bank in Cambodia and KNN Company, and Mekong Land Development Company, as well as the memorandum of understanding on merchandise import and export by CT Group and Angkor Sok Sen Chey Company.
With the collective dedication of both sides, the economic relationship between Vietnam and Cambodia is poised to ascend to greater heights, reinforcing and fortifying the enduring, close and traditional friendship between the two nations.
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After 56 years of diplomatic ties, Vietnam and Cambodia have forged a robust neighborly relationship, giving a priority to investment cooperation, yielding substantial positive outcomes. Cambodia, having evolved into an important investment destination, hosts over 200 projects and attracts a capital infusion exceeding US$2.9 billion from Vietnam. These projects span diverse sectors, encompassing agriculture, energy, telecommunications, finance, healthcare, trade, and services. Despite the amicable relations, the current investment outcomes fall short of expectations, marked by a contraction in scale and challenges impeding major projects. Concurrently, impediments to select initiatives curtail investment efficiency, progressively narrowing the scope for collaborative ventures. The Vietnamese and Cambodian authorities have proactively executed agreements, establishing a legal foundation and ensuring the security of investment and business activities while diligently resolving challenges faced by enterprises. Minister of Planning and Investment Nguyen Chi Dung |
By Giang Tu, Vietnam Business Forum
Vietnamese
